SEC / 2 posts found
SEC Chair Warns of Heightened Financial Fragility from AI
In a recent address to the National Press Club in Washington, Gary Gensler, Chair of the U.S. Security and Exchange Commission (SEC), expressed concern over the potential economic instability that could arise from the monopolization of artificial intelligence development by major tech corporations, particularly for applications in financial markets. Gensler emphasized the potential for AI to amplify financial instability, suggesting that the technology could encourage a herd mentality among individual market actors. This could occur if these actors make similar decisions based on identical signals received from a fundamental model or data aggregator. “Model risk management tools, while lowering overall […]
Could Coinbase’s SEC Battle Come Down to Its S-1 Filing?
In the ongoing legal confrontation between cryptocurrency exchange giant Coinbase and the U.S. Securities and Exchange Commission (SEC), District Judge Katherine Polka Failla has raised eyebrows in the crypto community with her probing questions and comments related to the SEC’s 2021 approval of Coinbase’s S-1 filing. The relevant courtroom exchanges unfolded during a pre-motion hearing on July 13 and centered on Coinbase’s initial public offering (IPO) in 2021. Coinbase’s IPO, which required an effective S-1 filing with the SEC, allowed the company’s shares to be publicly traded for the first time. S-1 filings are the type of registration required by the […]